GlobeSt.com caught up with Toby Scrivner, senior director of Stan Johnson Co., about net-leased healthcare facilities and about continued growth in the industry. But he did have one warning about certain facilities.
GlobeSt.com: What advice are you giving your clients on net-leased healthcare facilities?
Toby Scrivner: We like the continuing growth of the industry. Demographics are placing further demand on healthcare infrastructure, but we're sensitive to changes in technology and the administration of delivery. We're sometimes cautious of products like oncology facilities, where so much of the value is tied up in the technology. Overpaying today could put you in a precarious position if the technology becomes obsolete down the road.
GlobeSt.com: Do you see much cap rate movement for single-tenant medical product?
Scrivner: In healthcare facilities across the board, we've seen continued cap rate compression over the past 36 months—three to five basis points per month, lately—despite interest rate increases. That's a testament to the lack of available product. Average cap rates are currently below seven percent.
GlobeSt.com: Do you see any exceptionally bright spots in the sector, or a property subtype that's in high demand?
Scrivner: Product that's on or adjacent to a hospital campus is especially attractive. The synergy lends itself to long-term value. Even if a tenant vacates, there's always an alternative service that will be interested in the space. Much of the action is occurring in the Southeast, due to population migration—especially in income-tax-free states, where we see competition among traditional, passive, and 1031 investors.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
